DM Hardoi Locks Bank Managers Until Loans Are Sanctioned – Big Controversy Erupts!

Hardoi, Uttar Pradesh: A surprising incident in Hardoi has sparked a big discussion about how far the local administration can go while reviewing government schemes. During a meeting on the CM Yuva Udyami Yojana, District Magistrate Anunay Jha became upset over slow progress and instructed bank officers to stay inside the auditorium until loan approval targets were completed.

While the intention may have been to speed up the scheme, the method used has raised serious concerns.
Can the district administration force bank officers to approve loans?
Is it right to physically restrict officers inside a hall until targets are met?

Many banking professionals say no.

Bank loans—especially under government schemes—must follow banking rules, verification processes, and risk assessments. If banks approve loans under pressure, it may lead to fraud, NPAs, or misuse of public funds.

This is not the only such incident. A few months ago, the district magistrate in Ghaziabad had also done the same thing with bank managers. He also ordered the bank managers to stay in the meeting hall until the loans were sanctioned.

In June, a serious incident took place in Hapur. All the Bank Managers in the district were called in for the meeting, and the government officials were not happy with the performance. They asked Bank Managers to sanction maximum loans. Bank Managers said that they will not work under pressure and left the meeting midway.

These incidents show that the district administration is putting a lot of pressure on banks to sanction loans. It’s ok if the government wants the credit scheme to reach to maximum people. But the government should also help banks in Loan Recovery when the loan borrowers default on the loan.

Such incidents are becoming common day by day because bank management and bank unions are silent. Neither bank management not bank unions are taking any action to stop such incidents.

If there are issues in implementation, the administration should discuss the problem with higher bank authorities, coordinate with the Regional and Zonal offices, and escalate delays through official channels. But such actions by the local administration are not good.

Forcing officers to stay locked inside a hall, even with tea and dinner arrangements, goes against standard administrative practice. Such actions may create a negative environment, reduce morale, and even violate service protocols. Bank officers also point out that local administration cannot interfere in credit decisions. Only the bank is responsible for assessing loan eligibility, documentation, and repayment capacity.

The Hardoi incident has now become a talking point across banking circles, with many saying that while speeding up government schemes is important, loan sanction under pressure is not the correct approach. Instead, better coordination, higher-level meetings, training, and clear communication between departments would ensure smooth and transparent implementation.